User Account

All Pages

What is the increase in shareholders equity arising

Assignment Help Financial Accounting
Reference no: EM132881047

Moriones Company issued P5,000,000 face value 12% convertible bonds at 110 on January 1, 2016, maturing on January 1, 2020 and paying interest semiannually on January 1 and July 1. It is estimated that the bonds would sell only at 103 without the conversion feature. Each P1,000 bond is convertible into 10 ordinary shares with P100 par value.

Problem 1: What is the increase in shareholders' equity arising from the issuance of the convertible bonds on January 1, 2016?

a. 350,000
b. 500,000
c. 150,000
d. 0

Reference no: EM132881047

Questions Cloud

Organizational standards and values : Self-concept, self-esteem, and self-presentation are the three parts of self-perception. How do you see yourself in each of these three areas?
What the amount reported in sandhill income statement : What the amount reported in Sandhill's 2018 income statement from this investment should be? Sandhill Company purchased to hold to maturity
Describe the structured interview : Describe the structured interview. What are the characteristics of structured interviews that improve on the shortcomings of unstructured interviews?
What is the increase in share premium as a result of bond : What is the increase in share premium as a result of the bond conversion? What is the increase in share capital as a result of the bond conversion?
What is the increase in shareholders equity arising : Moriones Company issued P5,000,000, What is the increase in shareholders' equity arising from the issuance of the convertible bonds on January 1, 2016?
What amount of the proceeds from the bond issue should be : Case Company issued P5,000,000 of 12%, What amount of the proceeds from the bond issue should be recognized as an increase in shareholders' equity?
What is the carrying amount of the bonds payable on december : On December 31, 2016, what amount should be recorded as discount or premium on bonds payable? What is the carrying amount of the bonds payable on December
Expected basic salary for a job in norge electronic : What is the expected basic salary for a job in Norge Electronic that has a job grade midpoint of 600?
Review the association for talent development : Discuss at least two of the areas of expertise listed in the ATD Competency Model. Provide examples of how you have observed or experienced successful demo

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the? after-tax cost of capital to zephyr for? bonds

If the company is in a 30 percent tax? bracket, what is the? after-tax cost of capital to Zephyr for? bond? Zephyr Corporation is contemplating a new investment

  Create the loan amortization schedule forthe property

Create the loan amortization schedule forthe property. Create a schedule that converts theinterestexpense and depreciation expense to aftertax dollars.

  Unfunded pension liability

Imprudential, Inc., has an unfunded pension liability of $550 million that must be paid in 16 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 9.5..

  Do feel is really expense or just additional stock offerings

Do you feel it is really expense, or just additional stock offerings, by the corporation? For many years, accountants argued whether stock options

  Using the sum-of-the-years-digits method

Alteran Corporation purchased office equipment for $1.3 million in 2013. The equipment is being depreciated over a 5-year life using the sum-of-the-years'-digits method. The residual value is expected to be $400,000. At the beginning of 2016, Alteran..

  Net present value for replacing old machine with new machine

The Hilltop Corporation is considering (as of 1/1/08) the replacement of an old machine that is currently being used. The old machine is fully depreciated but can be used by the corporation through 2011. If Hilltop decides to replace the old machine,..

  What are the income tax consequences for darlene

When Denise died, her daughter Darlene received the policy proceeds from the insurance company. What are the income tax consequences for Darlene

  Explain does the published set of group financial statements

Explain Does the published set of group financial statements reveal the company's policy on corporate governance, Audit committees, Sustainability, Solvency

  Which must be person to become a registered company auditor

To become a registered company auditor, a person must be? a member of one of the accounting bodies. / ordinarily resident in Australia

  What are the implications of this trend for agency problems

Mutual funds and pension funds have become the dominant owners of stock in the United States. What are the implications of this trend for agency problems

  Which offer should county hospital take

County Hospital is planning to purchase a new piece,Which offer should County Hospital take if its risk-adjusted opportunity cost of capital is 10 percent?

  Which full set of financial statements for a period should

Which full set of financial statements for a period should report financial position? Earnings, changes in equity, and changes in retained earnings.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd